Q1. Explain with suitable examples why the support department costs are allocated

Q1. Explain with suitable examples why the support department costs are allocated to operating department? Briefly explain any one method of such allocation with numerical examples. (1 Mark)

Answer:

Q2. What are “Non-routine Operating Decisions?” Examine any one non-routine operating decision with suitable example and discuss what quantitative and qualitative factors should be considered in making such decision? (1.5 Mark)